Did you know that the success of a retail store is connected to its inventory or stocks?
Imagine a famous retail business. Perhaps you are thinking of a local kirana store in your locality that may be your competitor or a large retail outlet that is very successful online and offline. You would be amazed to know that their success is tied to the stock they hold.
- 1 What is stock management in a retail business?
- 2 Get the best App for stock management
- 3 What is the purpose of stock management?
- 4 Why stock management is important?
- 5 Here's how Zadinga helps you with stock management
- 6 What are different types of stock management?
- 7 Get the right stock management software
What is stock management in a retail business?
Stock management is knowing how much stock you have in your shop. How you track and control your shop’s inventory is the key to ensuring that you always have enough items in the right location at the right time to serve the needs of the customer.
What is the purpose of stock management?
Organising your stock levels properly will ensure that the rest of your supply chain management is efficient.
- If you don’t know the stock levels in your store or warehouse, you may not be able to make quick or smart reorder decisions.
- If you are unaware of the stocks in your shop, you will not know how to allocate the correct number of items to your online and offline store.
- If you have insufficient knowledge of a stock category, you may not be able to list the items accurately.
- Lack of stock management could cause you to be stuck with either too many items of a particular category or fewer products in another category.
Properly organising your stock levels will ensure that the rest of your supply chain management is efficient. You can avoid an out-of-stock situation, overstocks, mis-shipments, and other stock-related problems.
Why stock management is important?
Efficient stock management control means having good knowledge of the different kinds of stocks in your shop and knowing how much you have in your store at all times. There are two reasons for the importance of stock management.
1. It Improves Cash Flow
Good stock management will allow you to free up cash flow to be used elsewhere. If stocks are lying in the warehouse, it means it is taking up space and not being turned into cash to run other areas of your business operations.
2. It Can Cut Down Costs
As a local store owner, you would know when and how to predict which product could be in demand. If you are expecting high customer demand, you should ensure that you have enough stock available.
Poor stock management can cost you a lot of money. It can also cost you time spent correcting the mistakes at a later date.
Implementing the right stock management tools can cut down the risk of human error, encourage good customer reviews and build customer loyalty.
What are different types of stock management?
There are various kinds of stock management or inventory. It all depends on the type of items or goods that you sell. Let’s look at some of the different types of inventory you may come across:
- Finished products: These are items that are ready for sale that customers can immediately buy.
- In-transit products: These are goods that are on their way to your store or the final destination.
- Consumables: These are products you need to run your business every day, such as stationery, fuel, etc.
- Buffer inventory: This is also known as safety stock and serves as a backup if you need more supplies or have to meet a sudden emergency.
- Anticipation stocks: These are goods you may purchase in excess to prepare for a rise in sales.
- Cycle inventory: These products are shipped directly to you from a supplier or a manufacturer that you sell to your customers immediately.
- Decoupling inventory: These are specific items that you keep aside if you expect a stop in production or slowdown in the future.
Get the right stock management software
Having the right stock management software can allow you to monitor and purchase the stocks that your customers need. You can instantly observe if items are available in real-time to create an order for specific goods that may be decreasing in your store or warehouse.
Downloading Zadinga turns your mobile phone into a powerful shop management system. You can scan any barcode and identify the product with your phone camera to add it into your stock in a matter of seconds.
With such effortless stock management, you no longer need to waste time on manual stock management labour. Get the simple solution your need through Zadinga to save time and manage your shop easily.